ADF Foods Limited, an Indian food company, said that its board has sanctioned an investment of up to $5 million by its fully-owned subsidiary — ADF Holdings (USA) Ltd. for purchasing assets and establishing a step down subsidiary in the US.

ADF Holdings (USA) Ltd. will hold a stake of 70% in the share capital of the proposed step down subsidiary, which will operate as a distribution company.

The new subsidiary will help ADF Foods in moving up the value chain. The Indian food company said that this will further bolster its penetration and distribution with retailers with an expanded product portfolio.

ADF Foods said that it has been investing in creating a strong distribution network with continuous supply as a precursor to its growing capacities.

In the previous quarter, the Indian food company had started operations from its leased warehouse of 66,000sft in the US, which functions as its distribution center.

Bimal Thakkar — Chairman, Managing Director & CEO of ADF Foods said: “We are witnessing strong growth opportunities in our business and thus building our capabilities to tap those opportunities. A strong distribution network is the backbone of a consumer products company, and we are investing aggressively to further strengthen that network.

“This investment emphasizes our ambition to strengthen ourselves in the US in the long term and to expand our business there. We are sure this investment will bring significant benefits to us both operationally and financially.”

ADF Foods produces ethnic food products, ready-to-eat (RTE) items, ready-to-cook (RTC) items, pickles, sauces, dips, pastes, and frozen foods under seven brands, that include Ashoka, Soul, Nate’s, PJ’s Organics, Aeroplane, and Camel. The company not only manufactures, distributes, and markets Indian food but also produces organic Mexican and natural meat alternative foods.

  ADF Foods Limited, ADF Holdings (USA) Ltd., Bimal Thakkar, India, USA